Economic Integration Essay

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nternational economic integration The global economy uniquely referred to as the economies of individual countries linked to each other and changes in a single economy can have a ripple effect on others. Gross World Product is referred to as the aggregate value (sum) of total output of goods and services by all economies in the world over a period of time. Globalisation; trade in goods and services, financial flows, investment and transnational corporations, technology transport and communication, international division of labour and migration. Globalisation refers to the integration between different countries and economies and the increased impact of international influences on all aspects of life and activity. Economies are more closely unified thus the linkages between economies are stronger and more far-reaching than ever before. The movement of global influences washing across the world affects wholly thus economies embrace the global economy and pursue policies to integrate their economy with those round the world. There are many statistics that examine the measures of globalisation; an indication of the extent of globalisation can be presented through social or cultural indicators, the proportion of television programming taken by shows produced overseas or the influence of global fashions on what people wear in countries such as Australia. Indicators of integration b.w. economies include: Trade in goods and services (g & s); international trade in g & s is a measure of how goods and services produced in an economy are consumed in other economies around the world. Trade in g & s has grown rapidly increasing from 38% of global output in 1990 to 70% of global output in 2009. The GWP is over ten times its 1950 level and world trade volume over forty times its 1950 level. Growth of world trade has been twice the level of real GDP (world economic
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